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The Former 126-room Best Western Hotel in Grants, New Mexico
is Re-branded as the Red Lion Hotel Grants

SPOKANE, Wash., Dec. 7, 2011 -- Red Lion Hotels Corporation (NYSE: RLH) announced today it has rebranded the Red Lion Hotel Grants in New Mexico, making this the third hotel to join the brand in New Mexico in the last few weeks.

"Red Lion Hotels has been pleased with the support the company has received from all three of the communities in New Mexico where we now have franchise hotels," said Rich Carlson, Senior Vice President of Lodging Development for Red Lion Hotels Corporation. "These hotels serve as an enhancement to the Red Lion brand and our expansion into the Southwest."

The Red Lion Hotel Grants is located on the historic Route 66, about 80 miles west of Albuquerque. Grants is known for its proximity to ancient Anasazi ruins and for its outdoor recreation in the Zuni Mountains. The 126-room hotel located at 1501 E. Santa Fe Avenue was formerly the Best Western Inn & Suites of Grants.

The property is beneficially owned by Positive Investments, Inc., which also owns the Red Lion Hotel Farmington and the Red Lion Hotel Gallup in New Mexico and the Red Lion Hotel Oakland International Airport in California.
This property brings the total number of Red Lion franchised hotels to 17.

The company also announced today plans to list for sale in January the Red Lion Hotel Denver Southeast in Colorado with CBRE Hotels.  The Red Lion Hotel Denver Southeast is a full-service property with 478 rooms and 25,000 square feet of meeting space.  The timing is intended to be in advance of the Americas Lodging Investment Summit (ALIS) in Los Angeles January 23-25, 2012, where CBRE's representative, Chris Burdett, will be marketing the property.

In addition to Denver Southeast, Red Lion Hotels currently has three properties listed for sale including the Red Lion Colonial Hotel in Helena and the Red Lion Inn Missoula, both in Montana, and the Red Lion Hotel Medford in Oregon.

"Red Lion Hotels continues to expand its franchising network through the rebranding of independent hotels," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels.  "At the same time, we are selling properties that are not core to our ownership strategy, but expect that prospective buyers will want to maintain the Red Lion brand on selected properties."

About Red Lion Hotels Corporation:
Red Lion Hotels Corporation is a hospitality and leisure Company primarily engaged in the ownership, operation and franchising of midscale hotels under its Red Lion® brand. As of September 30, 2011, the RLH hotel network was comprised of 44 hotels located in eight states and one Canadian province, with 8,457 rooms and 424,387 square feet of meeting space. The Company also owns and operates an entertainment and event ticket distribution business. For more information, please visit the Company's website at

Pam Scott
Red Lion Hotels Corporation
509-777-6393 (d)
509-570-4610 (c)

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See Also: Red Lion Hotels Brand Chosen for Two Former Best Western Hotels in New Mexico; The 192-room Red Lion Hotel Farmington and the 126-room Red Lion Hotel Gallup are Now Open for Business / November 2011

Red Lion Hotels Acquires Ten Previously Leased Hotels From iStar Financial for $37 million / November 2011

Red Lion Hotels Continues Expansion in New Mexico with the Addition of the 126-room Red Lion Hotel Grants Formerly the Best Western Inn & Suites of Grants / October 2011

Red Lion Hotels Names Julie Shiflett as Executive Vice President and Chief Financial Officer / September 2011

Removing Interim Status, Red Lion Hotels Names Jon Eliassen President and Chief Executive Officer / February 2011

Red Lion Hotels Plans Sale of Two Properties; the Red Lion Hotel Fifth Avenue in Seattle and the Red Lion Hotel Denver Southeast / January 2011

Red Lion Hotels Enters into Two New Franchise Agreement in Northern California / November 2010

Red Lion Hotels Corporation Hires Dan Jackson as Senior Vice President and Chief Financial Officer / November 2010

Red Lion Hotels Expands Board of Directors; Appoints Melvin L. Keating to Board / July 2010

Red Lion Hotels Appoints Richard P. Carlson as Vice President - Lodging Development / March 2010

Directors of Red Lion Hotels Remove Anupam Narayan as Chief Executive Officer; No Reason Given / January 2010

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